Energy use in the manufacturing sector, 2009

2009 has been an economically weak year for Norwegian manufacturing because of the financial crisis. The manufacturing sector experienced a decline in demand, production stoppage and closures, which is reflected in energy usage. Total energy use in manufacturing, mining and quarrying amounted to 69 522 GWh in 2009; a decrease of 13 per cent from the previous year. Most of the industries in manufacturing, mining and quarrying had a decrease in energy use.

The highest decrease can be found in the metal industry- according to Statistics Norway’s monthly index of production, http://www.ssb.no/english/subjects/08/04/pii_en the production was reduced by 20 per cent in the same period. The chemical and pulp, paper and paper product industry are among other industries that strongly contributed to the fall in energy use in 2009. Total energy costs amounted to NOK 16 300 million; a slightly higher decrease of 16 per cent due to a fall in energy prices in 2009. A decrease in costs associated with purchased petroleum and gas products contributed mostly to this decline.

Electricity

Electricity is still the dominant energy product used in manufacturing, mining and quarrying. With an energy amount of 41 679 GWh, electricity accounts for 60 per cent of the total energy consumption. The power-intensive industries, which includes the producers of primary aluminium, ferro alloys, chemicals and pulp, paper and paper products are the largest consumers of electricity and accounted for 80 per cent of electricity consumption in the industry. Manufacturing, mining and quarrying used 8 570 GWh less of purchased electricity in 2009 than in 2008; a decrease of 17 per cent. Several of the companies that were shut down in 2009 were power intensive. In addition, other power intensive companies had production stoppages, or lower production than the previous year. Overall, this led to a decline in the consumption of electricity in power-intensive industries.

Energy prices

Power-intensive industries experienced an increase in average electricity prices from 2008 to 2009. This may be related to some of the older, more favourable prices for electric power contracts expiring during this period and companies with relatively low prices being closed down or experiencing production stoppages in 2009. The average price for the remainder thereby increased.

For several industries in the manufacturing sector, excluding power-intensive industries, electricity prices decreased in 2009 compared with 2008. This is due to reduced demand for electrical power, generally resulting in lower market prices for power and falling prices for fossil fuels as a major cost component in the production of thermal power.

It is worth mentioning that the average price of light heating oils declined by 16 per cent to NOK 5 689 per tonne in 2009. The average price of heavy oils was correspondingly down 28 per cent to NOK 2 911 per tonne in 2009. The average price of liquid natural gas declined by 10 per cent to NOK 3 418 per tonne in 2009, while the average price of propane and butane declined by 26 per cent to NOK 3 554 per tonne in 2009. Propane and butane prices vary greatly with the quantity purchased, which is reflected in large price differences between different industries.

Tables:

• Table 1 Energy consumption in establishments in maufacturing, mining and quarrying. Overview. Preliminary figures 2009
• Table 2 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type measured in GWH. Preliminary figures 2009
• Table 3 Energy costs in establishments in manufacturing, mining and quarrying, by industry subclass and energy type in 1000 kr. Preliminary figures 2009
• Table 4 Energy prices in establishments in manufacturing, mining and quarrying, by industry subclass and energy type measured in øre per kWh. Preliminary figures 2009
• Table 5 Energy consumption in establishments in maufacturing, mining and quarrying. Overview. Final figures 2008
• Table 6 Energy consumption in establishments in manufacturing, mining and quarrying, by industry subclass and energy type measured in GWH. Final figures 2008
• Table 7 Energy costs in establishments in manufacturing, mining and quarrying, by industry subclass and energy type in 1000 kr. Final figures 2008
• Table 8 Energy prices in establishments in manufacturing, mining and quarrying, by industry subclass and energy type measured in øre per kWh. Final figures 2008